Is the real scandal that financiers were able to risk so much of our pensions, asks GUY ADAMS
GUY ADAMS: One day in May 2019, a Dutch financier named Hans Van Zwol hit 'send' on a document outlining what he suggested was a 'terrible' threat to the global economy. It was several months before Covid would up-end money markets – and the Ukraine war, which would later turbo-charge our cost of living crisis, was but a figment of Vladimir Putin’s imagination.Van Zwol was, therefore, sounding the alarm about something entirely different. Namely, the bespectacled fund manager had become concerned about a range of complex products known in the trade as ‘Leveraged Liability-Driven Investments’ or LDIs.
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The Autorité des Marchés Financiers (AMF) warns: Invest in real estate via a fundraising in order to receive a quote -part of the rents is a real risk.
is sometimes too good to be true. Invest in real estate via a fundraising in order to receive a rent for the rents: the offer seems attractive but the Autorité des Marchés Financiers (AMF) calls for investors on Friday "to the greatest vigilance" because of the " risks incurred ".
The AMF denounced in a press release the "commercial discourse, sometimes misleading" held by the initiators of these offers, which are more and more numerous and which target a "very young" audience. The platforms offer fundraising which allow companies to buy buildings, in exchange for part of the income generated by the rental of the property and a possible added value to resale, "royalties".
Immobilier: The risk of bubble is excluded for Paris, according to UBS
© 224601706/Pascale Gueret - Stock.adobe.com although real estate prices stagnate or even lower, Paris is one of the least accessible cities, according to UBS. The Boom of the real estate is " about to end ", according to a study by the Swiss bank UBS . The Swiss bank publishes a real estate bubble index each year which analyzes residential real estate prices in 25 major cities in the world.
Read also Real estate: The new situation of rental investment
Investors do not become owners
"While commercial communication often emphasizes an investment in real estate, investors do not in any case become owners of the Well, "recalls the AMF. They simply gave money to a company "often little capitalized" and therefore without clean funds to deal with difficulties. Consequently, "in addition to the risks usually linked to a real estate investment", such as vacancy or non-payment of rents, investors are "exposed" to "the loss of invested capital".
The market gendarme, one of the missions of which is the protection of savers, also a craft promises of "too optimistic, even idealistic" yields and notes shortcomings on the "quality of the information provided, the processing of complaints or the Access to AMF mediation ".
Data from the IW Cologne: Why rents in NRW are just so much increasing .
The increase in rents in North Rhine-Westphalia has noticeably accelerated. In the third quarter of 2022, they rose by 6.1 percent compared to the previous year's quarter. In the past three years, the increase has been 4.7 percent on average and was therefore much more moderate. A similar trend was shown throughout Germany: rental prices recently rose by 5.8 percent-in the three-year average it was only 4.5 percent.